Magna controlled Opel also tipped to shut at least one major plant

摘要

Tata's intention to close one of its exiting British vehicle plants is now certain to be followed by a major capacity cut from Magna controlled Opel. Magna is widely expected to shut Opel's car assembly operation in Belgium, likely followed later by further extensive capacity cuts at some of its other European sites. While German Opel plants are judged to escape the axe, some, if not all of planned capacity cuts at Opel's remaining European vehicle production and assembly sites, would greatly lift plant capacity levels at its German plants. Magna, placed between a rock and hard place, chiefly the commercial necessity to shrink capacity with significantly lower future demand levels while sparing German plants after receiving up to 4.5bn loans from Germany's government, is clearly left with precious little option but to chop surplus capacity at non-German locations.